preceded by saying let's make it a pilot program for a few year and how well it works and next is a category that nobody has built and that has been dealt with and the third is a question of the sew spaces. potentially we could see buildings like active space completely taken over by start up.coms. the kinds of businesses that we're moving into the spaces in the late 90's that lead to the creation of this sort of category and so i think that's a pending issue that still needs to be resolved. putting an office cap on those things so they don't turn completely into tech spaces, a 50% cap seems quite in agreement with it elsewhere in pdr. thank you. >> thank you. next speaker.

>> hello. i am david pierce. thank you for having me. kate is humbled as mart of sf made and we're partnered with them and it's like having a second partner. i founded ohio in 97 it was just me. my background is architecture and this is a manufacture design build furniture company and we are now 22 people and 7,000 square feet and i don't want to give up on san francisco and manufacturing. i shouldn't say this but regardless we're going to stay here. we're going to figure out a way what we had to give up so far we had a 5,000 square foot storage space in oakland and have 10,000 plus in petaluma for storage so we are shuttling trucks and wildly inefficient for us. the people that we

serve live and work here. the people that work in the company live and work here as well. i am fortunate to have jesus come with me. he's my oldest employee. he's the smallest but the strongest in our workshop as well, but we feel like we're making the picks and shovels for the gold rush really. there is another wave. i here with the first wave and that crashed but i feel this is stronger. development happening in the city seems to be long standing type of development. we are serving lift, 350 work stations literally across the street from us, drop box, sound cloud, some of the tech companies and all need furniture to live with as well so there say residential side as well. thank you for having us. we hope this legislation passes. >> thank you. next speaker.

>> hi good afternoon. i am jesus and i work for ohio. i have been there for 12 years and live my life in the mission, and i am just happy to have a job where i get to bike and be and don't have to commute a very way to go to work and i just like working here, so i don't know what else to say. >> thank you. next speaker. >> hi. i am greg [inaudible]. i'm one of the owners of dand line alcoholic one of -- chocolate and we would benefit from this and looking for space to expand to in the last six months and it's really hard to find space in san francisco. we moved here recently and now employ 38

people and 38 new jobs and not to mention if we expanded we would double that. we need space. it doesn't exist so i am here in support of it. i also want to talk a little bit about the fact that san francisco has a proud tradition of chocolate. ghirardeli, a lot of chocolate makers have been in san francisco and all have moved out and it takes space to do this sort of thing, and i want to second the point we're not leaving san francisco. i want this to pass but we will do whatever we can to find space because we like being here. we like to employ people in san francisco. i like to walk to work so we're going to stay here but i want to reinforce the support we have and i will let our product manager speak more to that. >> next speaker.

>> good afternoon. you my name is nora hernandez and i am the product manager and i would like to speak of the jobs we created. the majority of the management is women which is rare for companies. we also have internship programs with some of the charter and public school here in the city so it gives the kids an opportunity to get excited about futures and typically they're not excited about the futures and once we go through the program they love being at dandy lion. i like that i can take muni to work and the majority of our employees bike to work. we really want to stay in the city and work with more kids especially in my department. i have -- we're working with youth made through

sf made to have an intern work with me, and yeah i think it's really important that small businesses outside of tech stay in san francisco. thank you. >> thank you. next speaker. >> good afternoon. my name is craig dalton and ceo of dodo case and over in dog patch and employ 25 people this time of year and 40 in the holiday season. we have a studio, a book bien ree, print and wood shop i am probably forgetting different things, but we're proud to be part of the san francisco manufacturing community for the last four years since our inception. we're often asked by other entrepreneurs how we grew and how we did everything in san francisco and i am always encouraging them to try san francisco for manufacturing but it's more difficult than it was

four years ago. we were lucky to find 14,000 square feet in the american industrial center but that doesn't exist anymore and no free space in the building, so i can urge them with my experiences and the road map but if there is no space they will go elsewhere so i encourage you to support this resolution. thank you. >> thank you. next speaker. >> hello. my name is annie and i'm a print artist and manage the screen studio at dodo case. i think i can count myself among one of the few lucky people. i get to work in the field they studied. i don't think that -- drawing a blank. i also have a small press, and i am currently

based and our studio has to go into storage so i am experiencing first hand the lack of space for small businesses in the city. i am surrounded by other individuals who get to work in their field and what their passionate about and i think that small businesses and small manufacturing offers that to skilled craftsman and artists in the city that other spaces don't so i am in full support. thank you. >> thank you and ms. hester. >> the chocolate guy forgot -- [inaudible]. i have had a procession of the businesses before you -- i bought from them. the city has gone through ups and downs. the pdr sector

is what saves the economy of the city because we have had probably six office booms and busts since i have lived here and i want to draw your attention to a couple of things on pages 12 and 13, and perhaps the author can tell me how they're going to work in reality? the grandfathering clause for the office space is 1316 -- line 16 on page 13. once a office is developed in the state they're grand fawshtded forever. that's the language i read and the nsr language is the enforcement language. it's on page 12. every [inaudible] in the city has an nsr on it. a number of enforcements of nsr is minus

one. it's zero. no one ever enforces nsrs. the planning department really consider them a huge joke. they tell people -- yeah, you don't really have to deal with it, and i think you need to find out how the enforcement is going to work. the law of supply and demand is also a factor in the rents that are charged. if the developer has incentive to have high rent office tenants and they're $50 a square foot and not $8 a square foot what is the incentive to keep pdr there? so there really needs a lot of monitoring and the planning partner has to 2200% of what they do now if not more. thank you. >> thank you. is there any additional public comment on

item number two? seeing none public comment is closed. [gavel] and i neglected to mention before that and we are joined by supervisor campos. supervisor campos. >> thank you very much mr. chairman and i want to thank the land use committee for hearing this item. i also want to thank supervisor cohen and her staff for all the work done on this very important piece of legislation and i want to thank laura lane from my office for her work. i appreciated all the comments that were made, and i apologize that i have to leave to another meeting, but i did want to make a couple of points. first i am very grateful that a lot of work has gone into this for the purpose of protecting pdr. i also want to acknowledge kate so farace of sf made for the important role they have played and i am excited about this legislation and hope to

move this forward. i know that no legislation is perfect and there are issues that have been raised, and one issue in particular they want to talk about and is something that was mentioned by a couple of the speakers, and i think it's a very legitimate concern. this idea it's not entirely clear what's going to happen even though we see a lot of good potential in this legislation, and in that there is the possibility with this enterprise work place category that you could have a situation where what you end up in those spaces is in fact office space and that you don't have pdr, and in that sense it could be -- it would defeat the intent and the purpose of what we are doing or trying to do here, so i personally like and would like

to pursue at the board the suggestion that has been made to use -- i'm sorry, to limit the use of allowable office space in the sew spaces to 50%. i think that's something that strikes the right balance in terms of allowing for office space, but at the same time making sure that in the end through the back door you don't have a situation where you end up not having pdr which is really ultimately what we're trying to accomplish so i just wanted to note that, and i believe that this legislation should be amended in committee -- i'm sorry, at the board of supervisors to place that 50% cap going forward so i will be making that motion at the board, and will be working with some of the folks who spoke about the importance of that amendment to

finalize the amendment and introduce that at the board, but with that i also think that all of us should be proud of the work that has been done and i think this is a very positive step. thank you. >> supervisor kim. >> thank you. i just wanted to make some comments. again i want to thank supervisor campos and supervisor cohen for heading the effort on reforming this portion of the planning code within the eastern neighborhoods. clearly a lot of work went into it and a lot of meetings and a lot of stakeholders were involved how to make pdr workable -- thankfully for the increasing manufacturing community here in san francisco and how we can make it work for the existing types of pdr that we have, particularly the localar tis nal group here in san francisco and i am grateful for and i know

some is in supervisor cohen's district and we have it in district 6 and nine. i appreciate the increase in the retail space. it makes sense. manufacturing has changed over the last decades and initially for elevator repairs and shipping and there is a need for retail space clearly the types of manufacturing that we have now and whether the heath or the tim bucko or the danda lion chocolate and makes sense and the type of shopping that we want to encourage and the local residents really appreciate. i think someone said there is no pdr in our district and we do have one and i appreciate supervisor cohen putting in the new ordinance today grandfathering them in. that is an example of ipdr and a space we can do both office of a tech company and pdr on that site. i am excited that building is

back on line or the full property is back on line and provide that to that corner of our district. i also appreciate the thoughtfulness of encouraging the construction of new pdr space. it's very hard to do given particularly the cost of construction here in san francisco, and so i am glad that the authors did push 20-33% of pdr in new construction, and happy to see that some of the survey work is helping to inform aspects of how the pdr was originally written into the eastern neighborhood and finally i think the three year pilot program is completely appropriate. we want to make sure this works and there are not unnecessary consequences that we're hurting the very industry we're trying to support here in san francisco. the cap issue i think our office -- or i have just have been grappling

with that concept since the morning and i would like to hear more and there is time in the week to see if it's the appropriate amendment to make to the full board and i appreciate it today. to the companies that have come i have shopped at all of your businesses and an assistant with chocolate company and i am proud of them and proud they're growing a business in the mission and hiring local workers so thank you to them and clearly a lot of thought has gone into this and i wanted to thank supervisor cohen for her leadership. >> thank you. >> supervisor cohen. >>i think we belabored the point. i'm going to offer steve a point and maybe come up and talk about enforcement. that was the issue of enforcement raised by one of the speakers in public comment. >> this raises a good point about enforcement in the city

and just as personally as staff i would love to see that the planning department have more capacity. it's usually a budget issue. what she speaks to and the special restrictions and specifically about the office space that is created and ensure the office space if this space after three years the pilot goes away that the office use is not illegal so it's not about the pdr space. it's about the office space and ensuring any developer that the office space is not illegal and hard to find tenants et cetera so that's really what that provision speaks to and not the pdr space. with the enforcement of the pdr space of course that is the ongoing question and this section doesn't speak to that. generally about the other enforcement requirements in the city but if you want to hire a bunch more enforcement people

for pdr uses that would be great. >> okay. we will take that under consideration. thank you. i just want to close out this item which just acknowledging that without this legislation today half of the sew spaces must be 500 square foot and the other half could be as large as 2500 square feet and we're proposing that all sew spaces are 1500 square feet or smaller and this is the data that has shown that is the most requested by manufacturers and high demand for craftsman who want to move their businesses out of their homes but don't necessarily have the funds to take on larger vacant pdr space, and i want to acknowledge what i heard today in be public comment but in meetings over the last year. i

know there is a fear that if any new buildings that are built that they will only have -- or they will be used for tech office space but i don't believe that a 50% on cap solves that fear and in fact it may in essence hurt the development of these spaces in the future, so certainly i have communicated with the individuals that have made these requests that if we see an issue with the spaces that i will be the first to come in and come back to the table and begin to modify table. i don't believe today making a policy change is is appropriate, and oftentimes as most legislation we can't necessarily solve for every possible occurrence and similarly not everyone gets everything they're looking for in one piece of legislation. i think we had good transparent process. it's been inclusive. as a result of

dozens of amendments and meetings and hours of discussion. we may not agree on one remaining issue but i think we can all agree on a whole that the legislation is good for the city. >> thank you supervisor cohen. >> thank you. >> and i also want to thank you for all the work. your office did a lot of work to move this forward. i think this is incredibly important legislation. when we talk about the economic changes in san francisco i think there's a lot of good and a lot of challenges and the reemmergance and the growth of the manufacturing sector in san francisco has been just a true bright spot in recent years and sometimes it's a different kind of manufacturing. we're living in 2014, not in 1950, and there are differences in our economy and what types of businesses that

are going to be viable in san francisco and i think that we have to be flexible and adjust to fit the realities of our situation and our economy, and i think we need to be very proactive in city city hall to make sure that the businesses can flourish and i know some of the commenters said we're staying here regardless and we're committed to san francisco and thank you for that. that was music to my ears but it's not good enough for them to stay here. we need to allow them to be successful and to grow, so it's not good enough for us to say okay you're stable in your space and you can manage and run the business here. we want to give these folks all the tools that they can get to grow and expand and hire more people and yes pay more taxes and help fund our critical services, and keep this city vibrant and make it

even more vibrant, and in terms of the small enterprise work place issue that was raised. first of all as i understand it supervisor cohen went through a lengthy process here agreed to quite a few amendments that were proposed. i'm not a big fan of the negotiate a bunch of changes and for the changes that you didn't get come to the board and ask for the additional changes anyway. legislation is give and take. we don't all get what we want. i have yet to pass a piece of legislation i got everything i wanted and i think what we have here thanks to the good work of supervisor cohen and her office is i think a very good solid piece of legislation. i think it's also important to keep in mind that manufacturing or pdr or whatever we want to call it is not some sort of

static thing. it's a spectrum. when you look at what manufacturing is, what production is, what distributions is, what repairs it's not just one thing. it's a flexible spectrum and i think the planning code needs to recognize that flexibility and i think the legislation does that. we have seen in the restaurant industry what happens when we try to think that we as government know exactly what the business model is or should be. we end up with overly proscriptive, restrictive regulations to the point where someone could serve a cold bagel but not a toasted bagel or the planning department would confiscate the toaster and what the code said until we simplified the code and there were those concerned but it's successful and they know what the industry is and what is needed and what is going to work and i think we need to take a similar approach here so supervisor thank you for your

work. i am very supportive of this legislation in the current form so colleagues if there are no additional comments can i have a motion to forward item two to the full board with positive recommendations. okay and we will take that without recommend objections. madam clerk can you call item three. >> item three is a hearing on the monthly report disclosing the municipal transportation agency service and maintenance. >> thank you and i called for i will wait for the crowd -- the large crowds. everyone loves pdr and everyone is leaving now. don't you like muni? okay.

the pdr crowd is gone. so colleagues i called for this hearing today to receive our quarterly muni service performance update. about a year ago given a concern i and many people have about the reliability and performance of the san francisco municipal railway i called for a hearing and then asked muni to provide quarterly reports on certain aspects of its performance including vehicle availability, break downs, on time performance, over crowding or lack thereof, and service disruptions, and so forth. some of the key indicators of how well the system is doing. colleagues we know that muni is a key aspect of the future

livability and economy of our city. we are a growing city. we have grown by 75,000 people in the last decade. we are projected to grow by 150,000 people. the bay area is projected to grow by 2.1 million people in the next 25 years and ansit has to be part of that future. we cannot afford to have another 50,000, 75,000 cars in san francisco or another million cars in the bay area. it doesn't work on our roads, in terms of parking, in terms of pollution, and so forth. we're going to be in a world of hurt if we don't have a transit system, not just muni supplying to all of our systems, but si system capable of providing reliable service to the city and this region so people can either want own a car or if they own a car can drive it less and that

will only happen if public transportation is able to get people where they're going in a reliable and consistent and efficient manner. for too long we have in san francisco -- frankly in this building where the policy makers sit, neglected muni. this city has allowed muni to accumulate 2.2 billion dollars in deferred maintenance and huge capital needs. we don't have enough vehicles or personnel in certain aspects of the system and as a result we see a reliability not being where it needs to be. we need to shore up the system that we have and we need to increase its capacity significantly, and we have a lot of work to do in order to do that, so today we will be hearing a report which will cover really the first

year since we asked for these quarterly reports to be provided, and i think it will give a nice snapshot of where muni was a year ago, and today and in between. you will see from the presentation some positive developments, and i really want to acknowledge john hailey, muni director of operations for some of the good work he has done turned and the turn around and the bottleneck and the addition of three car shuttles and we want more of them and a good start in the subway. reducing some of the slow zones in the system. reducing the number of failures at some of the portals where they go in and out of the systems and continued improvement in the above ground bus fleet. there continued to be challenges. muni's on time performance is the same as a

year ago at 61%. we have had an increase in terms of service gaps compared to a year ago. we see continued disruptions particularly on the late rail system and the subway. a continued fragile system. we see continued of doors even after rehabilitation of vehicles which i know is continuing vexing problem they're attempting to address and on the good news bad news front we have increase of buses even though there are more in service. it's a good thing and more people are riding transit. we know we have a growing population. we know people want to ride transit so we see more riding it. the bad news is we're not